An economy is suffering from a decline in its long-run rate of productivity growth alongside a rise in cyclical unemployment. Which one of the following policy packages is likely to be most effective in addressing both of these economic problems simultaneously?
A contractionary monetary policy and restrictive fiscal policy
A contractionary fiscal policy and market-oriented supply-side reforms
An expansionary fiscal policy and market-oriented supply-side reforms
An expansionary monetary policy and a contractionary fiscal policy
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.